For cannabis businesses, federal income taxes can be ruinous—even in loss years. Unlike other industries, which pay income taxes only on actual income, cannabis businesses, defined in federal law as drug traffickers, are singled out for an extra tax on a portion of their expenses. As a result, even the best tax planning tends to be complex and unpredictable. Recently, however, planners have become interested in a simple loophole which could eliminate cannabis’s disparate tax treatment entirely.
Making a change in your accounting method is the most exciting technique in cannabis tax planning today, and it yields a large tax savings from a small investment in tax planning. Executing this plan is a simple two-step process, both will be handled by the business’s CPA.
Meital Manzuri, Managing Partner
Meital Manzuri, is the managing partner for Manzuri Law and was recently named as one of the top cannabis attorneys nationwide due to her expert knowledge and experience. Leading a profound team of cannabis attorneys, Meital has been trailblazing cannabis legal issues since 2010. As one of the first cannabis business attorneys in California, Meital has earned a prominent reputation for her dedication to excellence in advising commercial cannabis businesses on a myriad of issues.
Since 2008, Meital has defended clients accused of cannabis related crimes and her tenure includes some of the biggest Federal Medical Marijuana cases to date.
Check out this blog post for more details